How does a Limited Warranty Deed differ from a Warranty Deed?

A Limited Warranty Deed is characterized by the presence of specific limitations on the nature of the title being transferred. This type of deed typically guarantees that the seller has a good title to the property only for the time they owned it and does not provide full assurances about the title's history prior to their ownership. This means that the seller is only responsible for claims or defects that occurred during their period of ownership.

In contrast, a Warranty Deed provides a broader guarantee to the buyer that the title is free from any defects and extends protection against any claims, regardless of when they arose. As such, the Limited Warranty Deed is designed with these limitations in mind, which provides a different level of protection and assurance to the buyer compared to a traditional Warranty Deed.

Understanding the nuances of these types of deeds is crucial for anyone involved in real estate transactions, as it affects the level of risk and liability associated with property ownership.